Financial And Economic Policies and Problems

1799 the gov treasury was almost empty and debts amounted to over 450 mill livres. N made reforms to rationalise and stabilise gov funding. This included the appointment of able men.

Reforming gov Ministries

Ministry of Treasury, headed by Barbe-Marbois, was responsible for gov expenditure.

Minsitry of Finances, headed by Gaudin, was responsible for the collection of taxation and revenues.

An audit office was set up n 1807 to check on all gov spending.

Taxation

Gaudin took control of the assessment and collection of direct taxes away from local authorities, Centralised control led to improvements.

The main direct tax was land tax. Land registers showing ownership were drawn up and tax registers showing who should pay were improved.

Made tax fair and efficient. Throughout the period land tax provided 29% of all gov income but it did not need to be increased, this would have upset N's key supporters.

Indirect taxes were increased to pay for war. 1804 responsibility for the collection was given to central excise office.

As well as continuing the unpopular taxes on goods initiated by the Directory, new ones were added on wine, playing cards and salt. Income from these covered 25% of gov income.

Central Economy

Bank of France

Founded by N in 1800 as a private bank, it had a range of public functions however, including the right to issue paper notres. Later it had strict controls placed upon it. Having a central bank made the task of raising finance much easier.

Currency

N introduced a new currency (franc de germinal) based on coins. He was depicted as a Roman Emperor. Strict control ensured this was a stable currency which was a strong base for the economy.

Industry

Cotton industry grew dramatically dueto using British machines, demand increase and no competition due to the war. However other textile industries decline.

The chemical industry made some developments such as soap making. The iron industry benefited from the demand for war armaments but did not make significant technological advances.

Agriculture

No changes in farming methods and little investment. Only change was growing of sugar beet and chicory to replace colonial imports of sugar and coffee cut off by the war.